Jump to ContentJump to Main Navigation
Producer DynamicsNew Evidence from Micro Data$
Users without a subscription are not able to see the full content.

Timothy Dunne, J. Jensen, and Mark J. Roberts

Print publication date: 2009

Print ISBN-13: 9780226172569

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226172576.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 07 June 2020

The Link between Human Capital, Mass Layoffs, and Firm Deaths

The Link between Human Capital, Mass Layoffs, and Firm Deaths

Chapter:
(p.447) 12 The Link between Human Capital, Mass Layoffs, and Firm Deaths
Source:
Producer Dynamics
Author(s):

John M. Abowd

Kevin L. McKinney

Lars Vilhuber

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226172576.003.0013

This chapter uses the Longitudinal Employer-Household Dynamics (LEHD) data set to assess the human capital embodied in a firm's workforce and relate it to the performance of the firm. It observes that mass layoffs and firm failure are much more likely in firms with a large proportion of low human capital workers. Firms that do not fail generally upgrade the human capital of their workforce. Moreover, firms with a single displacement event are more likely to die. A single displacement event is linked with a significant reduction in the upskilling of the continuing firm's workforce. Furthermore, the analysis indicates that firms that disproportionately employ workers in the highest quartile of the skill distribution are less likely to close, even given a displacement event, than are other firms that experience displacement events.

Keywords:   human capital, upskilling, firm failure, mass layoffs, workforce, single displacement event

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.